Market optimism is growing as the U.S. Securities and Exchange Commission (SEC) is expected to approve the first round of Bitcoin spot ETFs by January 10th of next year. According to insiders, the SEC may notify issuers who have submitted modified application documents as early as next Tuesday or Wednesday, granting them permission to issue Bitcoin spot ETFs next week.
Background:
Nine issuers, including BlackRock and Fidelity, have announced their Authorized Participants (AP), marking the final step for SEC approval of Bitcoin spot ETFs.
With the deadline approaching for the Bitcoin spot ETF “modified application,” Ark and 21Shares have yet to indicate their underwriters.
The review of the Bitcoin spot ETF application has reached a critical moment. The SEC recently requested that the 13 issuers who submitted applications provide updated S-1 application documents, confirming detailed information about the Authorized Participants (AP), and must submit them by the end of this year.
According to Reuters, BlackRock, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco, Fidelity, WisdomTree Investments, and the joint venture between Ark and 21Shares have all submitted newly modified application documents to the SEC, explaining in detail the arrangements they have made with market makers to ensure trading liquidity and effectiveness.
Insiders familiar with the reporting process say that issuers who submit revised application documents by the end of this year may be able to launch ETFs before January 10th next year, which is the date on which the SEC must approve or reject the Ark/21Shares ETF application.
These sources say that the SEC may notify issuers as early as next Tuesday or Wednesday that they have been approved to issue Bitcoin spot ETFs next week.
Multiple issuers disclose Authorized Participant information
Multiple issuers have disclosed AP information in the revised S-1 documents they have submitted to the SEC:
BlackRock: Designated Jane Street Capital and JPMorgan as its AP and earlier confirmed the use of a cash redemption model.
Fidelity: Designated Jane Street as its AP, with a total expense ratio as low as 0.39%, the lowest among all issuers currently.
Valkyrie: Designated Jane Street and Cantor Fitzgerald as its AP, with a total expense ratio set at 0.8%.
WisdomTree: Also designated Jane Street as its AP.
Franklin Templeton: Did not specify its AP and only stated in the document that the list of APs can be obtained from the manager or agent.
Invesco/Galaxy: Designated Virtu and JPMorgan as its AP and will waive fees for the first six months.
VanEck: Confirmed the use of a cash redemption model but did not specify AP details.
Bitwise: Did not disclose AP information or fee ratios. It was revealed that someone has invested $200 million in BITB.
Ark/21Shares, in the revised S-1 form submitted, did not explicitly disclose AP information. VanEck and Bitwise also did not disclose underwriter information in their latest submitted S-1 forms, and it is uncertain whether this will affect their future SEC approval.
As for Grayscale, which is committed to converting its Bitcoin Trust Fund (GBTC) into a Bitcoin spot ETF, it designated Jane Street and Virtu as its AP back in 2017.
Related Reports:
Nine issuers, including BlackRock and Fidelity, announce AP, the final step for SEC approval of Bitcoin spot ETFs.
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Tags:
SEC
VanEck
Authorized Participants
Bitcoin spot ETF
BlackRock